Developments in financial markets can have broad economic effects felt by many outside the markets.

It is not the responsibility of the Federal Bank - nor would it be appropriate - to protect lenders and investors from the consequences of their decisions

Achieving price stability is not only important in itself, it is also central to attaining the Federal Reserve's other mandate objectives of maximum sustainable employment and moderate long-term interest rates.

The GSEs are adequately capitalized. They are in no danger of failing.

I don't fully understand movements in the gold price.

A collapse in U.S. stock prices certainly would cause a lot of white knuckles on Wall Street. But what effect would it have on the broader U.S. economy? If Wall Street crashes, does Main Street follow? Not necessarily.

The lesson of history is that you do not get a sustained economic recovery as long as the financial system is in crisis.